Tuesday, May 14, 2024

Chicken Farmers Stuck With Uncertainty, Massive Loans In Wake Of Tyson Foods Closures Missouri Independent

In the counties where Tyson shut down chicken processing plants last year, and where contract growers who spoke to Investigate Midwest operate in, there were a total of 114 broiler chicken farms under production contracts in 2022, according to the USDA's most recent agricultural census.

Many chicken growers only grow for a single company as more than half of contract chicken growers live in a region with two or fewer companies, according to a 2012 Journal of Agricultural and Applied Economics study.

From the pivotal early morning phone calls to the millions in debt, former Tyson contract growers who spoke to Investigate Midwest said they have had to take out upwards of $2 million loans to become Tyson contract growers.

Investigate Midwest spoke to five growers, located in Arkansas, Missouri, Indiana and Virginia, and pored through lawsuits filed by four other contract growers to find how Tyson's closures have affected the farmers who raise the company's chickens.

Tyson did not answer specific questions about the closures, its relationship with contract growers, or how many growers lost contracts due to these closures.

"Tyson Foods is proud to partner with a network of independent growers across the country, and we value the contribution that these growers make to our business. Closing plants is always a difficult decision, and we understand the impact it has on the people and businesses in those communities. We work to help our team members and partners through that transition, and Tyson Foods has provided affected growers with several options to honor our contractual commitments and allow growers to receive fair value."

Chicken growers are generally paid under a system known as the tournament system, a method in which chicken companies rank a grower's flock of birds against neighboring growers based on the size of the birds and how much feed and other expenses they used. 

https://missouriindependent.com/2024/05/10/chicken-farmers-stuck-with-uncertainty-massive-loans-in-wake-of-tyson-foods-closures/ 

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